Central Government to Raise Rs 30000 Crore Through Government Securities Auction

Central Government to Raise Rs 30000 Crore Through Government Securities Auction

VoM News Desk | November 25, 2023 | 02:55 PM IST | Breaking News | Follow on Google News

Central Government to Raise Rs 30000 Crore Through Government Securities Auction

Central Government to Raise Rs 30000 Crore Through Government Securities Auction

The central government of India has initiated steps to bolster its fiscal management by announcing an auction for three government securities, aiming to raise a total of Rs 30,000 crore.

Details of the Securities for Auction

As per the Finance Ministry’s statement, the auction will feature the ‘7.37 per cent Government Security 2028’ with a notified amount of Rs 7,000 crore, the ‘7.18 per cent Government Security 2033’ at Rs 13,000 crore, and the ‘7.30 per cent Government Security 2053’ for Rs 10,000 crore.

Scheduled for December 1, the auction process will be conducted by the Reserve Bank of India (RBI) at its Mumbai office. The government also retains the option to accept additional subscriptions up to Rs 2,000 crore for each security.

Bidding Process and Participation

The bidding will include both competitive and non-competitive submissions, to be made electronically through the RBI’s E-Kuber system. Non-competitive bids will be open for a limited time on the morning of the auction day. The allotment for these bids is capped at 5% of the notified amount.

Results of the auction will be declared on the same day, with successful bidders expected to complete their payments by December 4. The securities will be open for “When Issued” trading, adhering to RBI guidelines for such transactions in Central Government Securities.

Government’s Fiscal Management Strategy

This auction is part of the government’s strategic financial management, aimed at fulfilling its fiscal obligations while ensuring stability and transparency in the financial markets.

VoM News Desk

VoM News is an online web portal in jammu Kashmir offers regional, National & global news.